A customer-premises telephone switching system that has native IP switching and a TDM switching matrix, each delivering call-processing features and functions transparently between internal extensions (stations), whether the endpoint is an IP or traditional device. Typically, an IP-enabled product starts life as a traditional PBX, but is further developed to include IP capabilities. The traditional TDM switching matrix remains a part of the architecture, but a server-based processor capable of delivering voice traffic via packet switching has been added.